Don’t let interest rates hit you on the chin when they go up.

The last thing Canada’s heavily mortgaged homeowners need is an increase in monthly payments, but some experts are saying this is exactly what’s ahead.

With earnings plunging in the oil patch and Canadians holding record levels of debt, the country’s banks are turning riskier, and that means higher borrowing costs ahead.

Fitch ratings agency “expects the cost of credit to rise in Canada as banks feel continued pressure” in the tougher new economic climate, the company said this week.

Interest Rates To Rise As Canadian Banks Now Riskier Than U.S.
Daniel Tencer

Photo Credit: Ruth and Dave